Natural Resource Abundance:  Is It a Blessing or Is It a Curse

Petkov, Boris

doi:10.35866/caujed.2018.43.3.002

Cited by 9 publications

(2 citation statements)

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“…Seen from this angle, therefore, the relationship between natural resources and economic growth can be better represented by the "resource blessing" hypothesis. Several studies across the world confirm this hypothesis (Gylfason, 2001;Peach and Starbuck, 2011;Petkov, 2018).…”

Section: Introductionmentioning

confidence: 81%

“…This is done by the collapse of the manufacturing sector due to domestic currency appreciation and the diversion of productive resources from other sectors of the economy to the natural resource sector following natural resource windfalls. This phenomenon was first occurred in Netherlands in early 1960s (Roy et al, 2013), which rendered it the term "Dutch diseases" in natural resource literatures (see (Sachs and Warner, 1995;Drelichman, 2005;Gerelma and Kotani, 2016;Petkov, 2018;Vaz, 2017).…”

Section: Introductionmentioning

confidence: 99%

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The Relationship Between Natural Resource Rent and Economic Growth in Nigeria

Chala,

Dagim,

Belisty

et al. 2023

ijfirm

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Purpose:The current study explored the nature of the relationship between natural resources and economic growth in Nigeria, drawing on linear and nonlinear versions of the ARDL model over the period covering 1972-2019. Design/Methodology/Approach: In this study, real GDP per capita was used as a proxy variable for economic growth, and it was sourced from the World Bank's database of world development indicators. As a measure of natural resources, the study used total natural resource rent expressed as a percent of GDP. Oil is represented by oil rent as a percent of GDP. The data on these variables was collected from world development indicators of the World Bank. Findings: The models consistently show that natural resources, economic growth, trade openness, and financial development are co-integrated. Findings of the current study indicate that natural resource is growth neutral in the long run and that there is no evidence of resource curse hypothesis. The study results also reveal that the relationship between natural resources and economic growth is asymmetric, such that a negative shock to natural resources retards economic growth in the short run. In addition, the study result reveals that natural resource and economic growth reinforce each other as bidirectional causality between the variables was detected. On the other hand, minor and major shocks to natural resources fuel economic growth. Practical Implications: The study recommends that the government of Nigeria design effective strategies to avoid a negative shock to natural resources and follow economic policies that enable the country to generate large revenues from natural resource exports.

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Section: Introductionmentioning

confidence: 81%